Crude weekly insights – Fuel oil markets movements – Furnace oil price may go down
Brent flat prices settled above $105 after a volatile movement whilte U.S crude futures closed at $94.4/bbl on Friday evening. Both the benchmaks logged in large weekly gains, Breaking the 3 week stretch of falling oil prices. Oil markets were volatile and directionless amid unresolved conflict and continued closure of SoH that is controlling 20 to 30 pct of global oil market. Timespreads markets began to strengthen along with crude. Both the benchmarks prompt futures timespreads market structures were moving with strong backwardation that signals rapid draw down of inventories across. Inventory reports lent support this week. Product stocks were aggressively drawn while crude stocks remain high and staged to cater to Hormuz-starved market. Refined products traded in line with crude. Diesel markets managed high margins while gasoline crack spreads lagged behind. Spculators data painted mixed picture. Though net length reduced, Speculators were the net buyers of Brent F&O through the week ending 21st April. Overall net gain was driven entirely by a pullback in shorts. Hope PAK talks may trigger some speculation next week. Do note that positioning related risk is largely pointing to the downside.
FUEL OIL MARKETS
Fuel oil markets largely demonstrated bullish momentum last week at SG trading window in Asia. HSFO prices recovered on strong demand from srubber markets. Tightening middle east arbitrage flows also lending support with stable supplies from refineries. VLSFO markets are more stronger than HSFO due to availability of tight blending components, Strong container & tanker bunker demand apart from picking up seasonal demand. Widening spread signals the strong demand for compliant fuels with strong scrubber economics. Furnace oil (FO) prices are very likely to be revised down for the first half of April, 2026.
